Why invest
in Nexans?

Electrification is in Nexans’ DNA and has been for the last 120 years. We are entering a 20-year hyper-cycle of investment in electrification as the world moves from fossil fuels to renewables. Nexans will be at the heart of this colossal wave of investment, innovation and decarbonization.

 

Today we are making all the right moves to electrify the future: pureplay over generalist, value over volume and simplicity over complexity.

 

Our strategy explained

Entering the third electrical revolution with massive investment

Mega trends all point in one direction: by 2030, €7 trillion is to be invested in electrification worldwide as electricity demand will grow by 30%. It is a huge opportunity. Nexans positions all its operations across the electrification value chain, from Generation and Transmission to Distribution and Usage.

Electrification market: a tremendous growth potential

Electrification market represents 65% of the world cable market and is expected to grow by +4.3% per annum over the next 10 years driven by key growth trends:

  • growing energy consumption,
  • demand for sustainable energies,
  • grid modernization and protection.

Electrification brings massive opportunities all along the value chain. In power generation and transmission, energy transition is set to feed demand for offshore wind and interconnection cables with projects getting more complex, with longer distance and greater depth. Electricity distribution requires additional investments, as grid is ageing, particularly in Europe and the US, which will feed growth. Finally, electricity usage in buildings also offer growth potential, notably to ensure safety and energy efficiency.

Our performance improvement since 2018 in undeniable

Nexans has undertaken an in-depth transformation, building a leaner, more customer centric and profitable Group.

  • From €325 to €665M Adjusted EBITDA (2018 to 2023)
  • From €21 to €454M Normalized free cash flow (2018 to 2023)
  • From 9 to 20.7% ROCE (2018 to 2023)

Our financial performance

6 reasons why Nexans is well positioned for exceptional performance in the energy revolution

Exceptional outcomes from proven SHIFT transformation platforms

Just four years of SHIFT program have transformed Nexans beyond expectations.

SHIFT is a PE Like method supported by in depth financials and data analytics, and a breakthrough way to unleash cash through complexity reduction

Nexans HV plant in Calais, France

Untapped premiumization opportunity beyond cables

Value over volume has opened up our marketplace to new possibilities in innovation, digital and services.

Nexans is amplifying its R&D strategy in 3 core areas:

  • customer experience (supply chain, services, smart products);
  • digital solutions (industry 4.0, IoT);
  • and sustainability (eco-design, low carbon and circularity).

Digital solutions are a growing part of Nexans portfolio. At Nexans, cable drums are tracked using IoT technology while our asset management solution helps grid operators get maximum return on their power network.

Beyond cables

As a leader in electrification, Nexans is a key player in the energy transition and sustainable development of communities

We are determined to play a major role in creating a viable and sustainable world. We are taking a further step towards the contribution to carbon neutrality by 2030 by committing to building tomorrow’s sustainable energy highway.

The Group has been a member of the UN Global Compact since 2008 and includes the SDGs in its CSR priorities. In 2020 Nexans joined the CDP’s prestigious β€œA-list” and is committed to contributing to carbon neutrality by 2030, in line with the goal of limiting global warming to 1.5Β°C.

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Circularity is at the heart of our model

Fully integrated from metallurgy to cable recycling, the Group has a unique approach on circular economy for copper, but also for other materials, plastic compounds, water, drums and packaging.

The circular economy features in the Group’s CSR policy as one of the main ambitions, covering the product, the industrial and supply chain processes.

Impact